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Problem:

An investment project has annual cash inflows of $4,600, $3,700, $4,900, and $4,100, and a discount rate of 13 percent.

Required:

Question 1: What is the discounted payback period for these cash flows if the initial cost is $5,500?

Question 2: What is the discounted payback period for these cash flows if the initial cost is $7,600?

Question 3: What is the discounted payback period for these cash flows if the initial cost is $10,600?

Note: Please provide equation and explain comprehensively and give step by step solution.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91173746

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